Germany wants to shield companies from higher power prices during coal exit – report
The German government wants to extend beyond 2020 CO2-related compensation for energy-intensive industry, sources close to the coal commission told Reuters. The economy ministry proposed extending a refund they receive for surcharges on the electricity price that reflect the carbon emissions prices paid by power producers, reports Markus Wacket. The compensation aimed at securing international competitiveness recently amounted to almost 300 million euros per year, but much higher sums are expected in the future due to the increase in the price for CO2 emission certificates, according to the German version of the article.
Companies fear the coal exit will push up power prices and they have called for protection. But there are different estimates of how a coal exit will affect prices. Think tank Agora Energiewende* predicts that while a coal exit would lead to power price spikes in the short-term, resolute renewables expansion could mean even lower industry prices within a relatively short time. The Federation of German Industries (BDI) plans to table a study on the effects of a coal exit on power prices next week, according to Reuters.